It's possible to trade profitably on the Forex, the nearly $2 trillion worldwide currency exchange market. But the odds are against you, even more so if you don't prepare and plan your trades. According to a 2014 Bloomberg report, several analyses of retail Forex trading, including one by the National Futures Association (NFA), the industry's regulatory body, concluded that more than two out of three Forex traders lose money.
This suggests that self-education and caution are recommended. Here are some approaches that may improve your odds of taking a profit.
Prepare Before You Begin Trading
Because the Forex market is highly leveraged -- as much as 50 to 1 -- it can have the same appeal as buying a lottery ticket: some small chance of making a killing. This, however, isn't trading; it's gambling, with the odds long against you.
A better way of entering the Forex market is to carefully prepare. Beginning with a practice account is helpful and risk-free. While you're trading in your practice account, read the most frequently recommended Forex trading books, among them
Currency Forecasting: A Guide to Fundamental and Technical Models of Exchange Rate Determination, by Michael R. Rosenberg is short, not too sweet and highly admired introduction to the Forex market.
Forex Strategies: Best Forex Strategies for High Profits and Reduced Risk, by Matthew Maybury is an excellent introduction to Forex trading.
The Little Book of Currency Trading: How to Make Big Profits in the World of Forex, by Kathy Lien is another concise introduction that has stood the test of time.
All three are available on Amazon. Rosenberg's book, unfortunately, is pricey, but it's widely available in public libraries. "Trading in the Zone: Master the Market with Confidence, Discipline and a Winning Attitude," by Mark Douglas is another good book that's available on Amazon, and, again, somewhat pricey, although the Kindle edition is not.
Use the information gained from your reading to plan your trades before plunging in. The more you change your plan, the more you end up in trouble and the less likely that elusive forex profit will end up in your pocket.
Diversify and Limit Your Risks
Two strategies that belong in every trader's arsenal are:
Diversification: Traders who execute many small traders, particularly in different markets where the correlation between markets is low, have a better chance of making a profit. Putting all your money in one big trade is always a bad idea.
Familiarize yourself with ways guaranteeing a profit on an already profitable order, such as a trailing stop, and of limiting losses using stop and limit orders. These strategies and more are covered in the recommended books. Novice traders often make the mistake of concentrating on how to win; it's even more important to understand how to limit your losses.
Be Patient
Forex traders, particularly beginners, are prone to getting nervous if a trade does not go their way immediately, or if the trade goes into a little profit they get itchy to pull the plug and walk away with a small profit that could have been a significant profit with little downside risk using appropriate risk reduction strategies.
In "On Any Given Sunday," Al Pacino reminds us that "football is a game of inches." That's a winning attitude in the Forex market as well. Remember that you are going to win some trades and lose others. Take satisfaction in the accumulation of a few more wins than losses. Over time, that could make you rich!
Chocolate Chip Muffin
Chocolate Chip Muffin
We’re using 3 forms of chocolate in these muffins and still managed to keep them relatively keto friendly. Low carb chocolate muffins are the perfect breakfast for those days you want to treat yourself a little bit. We’ve made a video to show you how to make them step by step!
In this recipe we use 3 forms of chocolate, and these are the types we almost always have in our house.
Everyone has probably heard of cocoa powder before, but the other 2 might be new to you. Bakers chocolate is my absolute favorite. I often have a little block after dinner for a treat. At 1g net carbs per block this stuff is very keto friendly. It’s not sweet at all though. We use it to deliver that dark chocolate flavor we wanted in these muffins. Chopped chocolate is always a great addition to chocolate muffins!
LOW CARB CHOCOLATE MUFFINS RECIPE
Low carb chocolate muffins are the perfect breakfast for those days you want to treat yourself a little bit. We’ve made a video to show you how to make them step by step!
INGREDIENTS
- 1/2 cup peanut flour
- 1/4 cup Unsweetened Cocoa Powder
- 1 ounce Unsweetened Bakers Chocolate
- 1 ounce Lily's Chocolate Chips
- 1/4 cup erythritol
- 1/4 cup Heavy Cream
- 4 large eggs
- 1 tsp Baking powder
- 4 tbsp Butter
- 1 tsp vanilla extract
- 1/8 tsp Pink Salt
INSTRUCTIONS
- Start by combining dry ingredients. Thoroughly mix peanut flour, cocoa powder, erythritol, baking powder and salt.
- In a separate bowl combine heavy cream and butter with a hand mixer.
- Once combined add eggs and vanilla and mix until combined.
- Add the dry ingredients to the wet and mix until combined.
- Add all of the bakers chocolate and HALF of the Lilly's chocolate and fold together.
- Scoop into muffin tins and top with the remaining Lilly's chocolate.
- Bake at 350 for 20 minutes. Test with a toothpick. Enjoy!
